Energy Transfer Partners LP (ETP) has received approval from its board of directors to manufacture a roughly 1,100-mile pipeline (Bakken Pipeline). The publicly traded energy pipeline operator will transport crude oil from the oil producing region in the Bakken shale to Patoka, IL. Bakken Pipeline will thereafter join the partnership’s existing Trunkline Pipeline (Trunkline).
Energy Transfer Partners added that the shippers will get the opportunity to access the Midwest and East Coast markets by transporting crude from Patoka via rail. The shippers can also use the Trunkline to carry crude to the Gulf Coast market and Sunoco Logistics Partners LP’s (SXL) crude oil terminal at Nederland, TX.
The partnership's plan to build the Bakken Pipeline stems from sufficient interest that shippers showed in transporting the produced crude oil from the Bakken shale to the multiple markets. The pipeline will be able to carry 320,000 barrels per day crude oil initially. Later on, Energy Transfer Partners will boost the capacity as per customer demand. The partnership expects the Bakken Pipeline to start operating by the latter half of 2016.
Energy Transfer Partners believes that the pipeline will not only open up multiple markets for shippers, the carrying cost of crude in this route will also be the bare minimum.
Dallas, TX-based Energy Transfer Partners, a master limited partnership, engaged primarily in the gathering, processing, storage and transportation of natural gas. The partnership currently carries a Zacks Rank #2 (Buy), implying that it is expected to outperform the broader U.S. equity market over the next one to three months.
One can also look at better-ranked players in the same industry like Boardwalk Pipeline Partners LP (BWP) and Magellan Midstream Partners LP (MMP). Both partnerships sport a Zacks Rank #1 (Strong Buy).
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Zacks Investment Research
- Oil, Gas, & Consumable Fuels
- Basic Materials Industry
- Energy Transfer Partners
- Trunkline Pipeline
- Bakken shale